Warning Signs of a Layoff: Why Layoffs Happen and Early Detection Signals

This article examines the causes and early warning signs of tech industry layoffs, emphasizing that layoffs typically result from revenue growth shortfalls relative to cost structure, with people costs comprising 70-80% of software company expenses. The author identifies seven key indicators of impending layoffs—including missed sales targets, hiring freezes, poor unit economics, and changes in leadership behavior—and provides guidance on executing layoffs with transparency and deliberation.